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2014 (8) TMI 285 - AT - Central ExciseWaiver of pre deposit - CENVAT Credit - Notification No. 214/86 - Appellant took credit of duty paid on the raw material i.e. MS Rounds, MS Tubes, Pipes, MS Bars/Rods and sent them to the job workers for carrying out the process of cutting, straightening, threading, forging and trimming for manufacture of threading rods, Ledger Blade and Jack Nuts etc. - ground for disallowing the Cenvat credit of duty paid on the raw material sent by the Appellant to job workers is that the processes carried out by the Appellant do not amount to manufacture - Held that:- assessee was paying duty on the final product cleared by them. The show cause notice or the Order- in-Original doesn't question the applicability of exemption notification no. 214/86-CE in respect of the job workers. If the contention of the adjudicating authority that the Appellant themselves did not carry out any processes amounting to manufacture (and hence no Cenvat credit can be allowed to them on the raw material) then the Appellant would not be liable to pay duty either. Nowhere this notification stipulates that the principal manufacturer must carry out some operations amounting to manufacture. It is also a fact that the job worker works on behalf of the principal manufacturer. It is also not disputed that the final product emerged as a result of subjecting the raw material to processes amounting to manufacturer and the appellant paid duty on the final product. Thus prima facie, there is nothing which would make the impugned Cenvat Credit inadmissible to the Appellant - prima facie the Appellant has a strong case and balance of convenience also clearly lies is its favour - Stay granted.
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